Why CRM needs you?
Transcript of Why CRM needs you?
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What is CRM?
Methods, software, telecoms and
Internet capabilities that help an
organisation manage customer
relationships in an effective way
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Where are you coming from?
• Who is using any CRM?• What types?• How successful is it ?• What problems are you having?• Are there obvious solutions?• What are the barriers you face?
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Why CRM needs you?
1. CRM needs “metrics”
2. CRM needs logic
3. You have these skills
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10 Major changes
1. “Instant” = NOW 2. Always on = 24 x 73. Pull not Push4. “Customer-power”5. Fast growing E-
commerce 6. Online agents / operators
Reviews + Price + Search7. “Dynamic packaging”8. “Mass” market => “Niche” 9. Shift physical assets =>
“Brands”10.Government funding??
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Why crucial, NOW, to YOU?
1. Now - what is the future for Tourist Offices as you know them?
2. Now – how can you help your’s access $?
10 Major changes = 2 BIG questions for you
CRM could be vital to its future
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Benefit from CRM without the problems.
You will understand:1. Shift of power to the customer2. CRM - Benefits and Problems 3. CRM - Tourism Specifics4. CRM - Getting more for your $5. CRM - Getting started6. CRM – Review of your S.W.O.T.
[Form]
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6 Your S.W.O.T. NotesCRM in your own organisation
ThreatsOpportunities
WeaknessesStrengths
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Customers in charge?
“Herd”= mutual strength
“community-empowered customers … such a dramatic change … it threatened the very survival of all businesses in all industries. The Economist
“this is the biggest change to business "...since the Industrial Revolution". Business Week
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http://thorntree.lonelyplanet.com/online bulletin board with over 5,000 posts a day
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What is CRM really?Is it ?• Technology• “Segmentation”• Selling efficiency• Advanced database
marketing• What is
“customer-centricity”
“Almost anything that suggests customer-centricity”
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Obvious benefits of CRM
• Not many for the customer• Not much about relationships
• Mainly about “marketing automation” efficiency and cost reduction
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Other benefits of CRMAccess to data by all “customer-facing” staff can improve:
– Customer quality experience– “Up-selling” and “Cross-selling”– Repeat or Return purchases– Referrals to others
and Profitability
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BUT high CRM failure
• Est. global CRM failure rates = 65%.Source: Gartner Group
• Most will fail:“to align management …
and customer outcomes”
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Causes of CRM failure
1Bad advice2Software problems4Other4Budget problems6Lack of CRM skills12Poor Planning20Lack of CRM understanding
22Company politics and inertia
29Organisational Change
SourceCRM-Forum
%
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Technology is not CRM
• Plenty of CRM technology• Wide range “off the shelf”• Not many “techie” problems• Need not be expensive • Easily creates a “Barrier” to
relationships• “Its all about what you do with
what you’ve got”
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CRM is far-reaching• Affects all parts of the organisation
which deal with the customers.
• Different departments in the organisation have different expectationsfrom CRM.
• It affects customers!
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Why is “aligning” critical?
1. Management expects results conflicting with customers’ requirements
2. Managers in different parts of the organisation have different expectations of:
– Results they want– The type and amount of contribution
they are expected to make
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“Rear view” data problem
• Customer flew from UK on VIRGIN Atlantic and stayed 7 nights and was staying at the Jolly Beach resort in October 2005
• What does that tell you about his /her future as a customer of the Jolly Beach, of Antigua - or of VIRGIN Atlantic?
• What future value is such information?
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Rear-view Mirror CRM
• CRM = lot of data about what customers havedone
• Not much about what they WANT to do
• Would you drive your car that way!!
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Internet = preferred travel information source
• Web search: 65%
• Personal recommendation: 39%
• TV program: 24%
• Travel agent’s office: 22%
• Newspaper: 14%
• Other method: 5%
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Target for Tourist Boards?Customer = someone who pays for
goods or services
Who are your customers?• Government?• Private sector tourism?• Tourists?• What are your goods or services?
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“B2C” Tourist CRM
• B2C = Business to Customer• Complex and lengthy decision • Usually “Group” decision• Multiple suppliers of each vacation• Lengthy or no repeat cycle• “Life-cycle” of vacation patterns• Intermediaries• Relevance• Persuasion
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“B2B” CRM
• B2B = Business to Business • B2B = differences from B2C?• Government and Private Sector
differences?• Differences inside Private sector• How do you combine working for all
of them?
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Tourism Information … a paid-for service?
Online Airline Guide [OAG]
made more money than all
the US airlines combined
[2001]
Customer RelationshipManagement
Customer
Managing
Relationship
OR ???
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Right way round
Customers expect theirrelationship
to be the right
way round
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Respect• “Addressing privacy
concerns will be a top business priority of customer relationship marketing”
• Who owns the data?
• Spam and “Phishing”
• Call-reject software and Telco systems
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Request “active” permission
• Opting in• Opting on• Opting when• Opting where• Opting how• Opting now
1.Customers only pay attention if it suits them.
2.So – give them a reason
3.Offer a benefit
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Returning or Repeat? • Customer lifetime value• Give value to returning• Make returning easy• Woo them !• Personalisation or
Customization ?• Loyalty Programmes?
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Referrals
• C2C Word of mouth• Often said every complaint
= retold to 10 people• BUT how many times are
good experiences retold• Make opportunities and
encourage
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Real People• 50% of impact is the
way things are said, face-to-face interactions, and personal appearance.
• Staff development and motivation =critical
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5 stages of CRM Implementation1. Strategic Development
Where are we, What do we want to achieve, Who are the customers we want and how segment them
1. Value Creation2. Multi-channel integration3. Information Management4. Performance Assessment
First 3 stages = Marketing
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CRM planning is critical• Iterative research / feedback with
customers• Align expectations of different
departments• Map out business processes• Iron out any shortcomings
before jumping to a massive and expensive CRM implementation.
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Internet data collection problem
• Customers don’t like giving personal details
• Requiring these before viewing information makes many leave website
• Many will still request removalfrom database after viewing
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Brain Juicer
•Online collection
•Online processing
•Qualitative
•Quantitative
•For NPD
•For Tracking
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Brain Juicing• Buy respondents from specially
recruited Panels even in China!• Use own database of “opt-ins”• Multi-lingual• Multi-media – story-boards,
web pages and TV ads• Interactive and richer feedback • Very fast and economic
• www.brainjuicer.com
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6 Your S.W.O.T. CRM in your own organisation
ThreatsOpportunities
WeaknessesStrengths
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Get “A’s” for CRM Success
1. Aligninternal and external expectations with outcomes
2. Avoid elephants on the road Look AHEAD